Capital One is eliminating all overdraft fees and non-sufficient fund fees for consumer banking customers.
The new service — dubbed No-Fee Overdraft — will launch in early 2022.
The nation’s sixth-largest retail bank says it is the only top-10 retail bank ending such fees for all of its consumer bank products.
Although the bank is ending overdraft fees, it will continue to offer overdraft protection.
Capital One customers currently enrolled in overdraft protection will be automatically converted to No-Fee Overdraft when it is rolled out.
Customers who choose not to enroll in overdraft protection will simply see transactions that would overdraw an account be declined. No fees will be assessed.
In a press release, Richard Fairbank, Capital One founder and CEO, says:
“Long ago, we set our sights on reimagining banking. Our award-winning checking accounts already feature no monthly fees and no minimum balance requirements. Eliminating overdraft fees is another step in our effort to bring ingenuity, simplicity and humanity to banking.”
In the same press release, Lauren Saunders, associate director of the National Consumer Law Center, hailed the Capital One announcement as a “a landmark moment for American families,” adding that it will have “tremendous benefits for the most vulnerable consumers.”
Earlier this year, Ally Bank also announced that it was ending overdraft fees.
If such moves have you wondering whether your bank is delivering the service you need, stop by Money Talks News’ Solutions Center and search for a better bank account.